0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Real Time News
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/XOTxEejF5O
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.62% Gold: -1.24% Silver: -3.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lBG9B5iYSk
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.19% 🇳🇿NZD: 0.19% 🇨🇭CHF: 0.06% 🇪🇺EUR: -0.04% 🇬🇧GBP: -0.08% 🇯🇵JPY: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/jOgEIxjTiT
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: France 40: 0.85% Germany 30: 0.84% FTSE 100: 0.65% Wall Street: 0.23% US 500: 0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/CIkPYnBu5L
  • #Gold prices are sinking, dipping back below the $2k/oz figure as inflation expectations continue to ease following Friday's US jobs data. The report showed faster job creation and higher wage growth, cooling Fed stimulus bets
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/D5upwqIsgB
  • 🇬🇧 Claimant Count Change (JUL) Actual: 94.4K Expected: 10K Previous: -28.1K https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Employment Change (MAY) Actual: -220K Expected: -288K Previous: -126K https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Average Earnings excl. Bonus (JUN) Actual: -0.2% Expected: -0.1% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2020-08-11
  • 🇬🇧 Average Earnings incl. Bonus (JUN) Actual: -1.2% Expected: -1.1% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-08-11
CAD to Gain on Firm Canadian Jobs Report Giving Green Light to BoC Hike

CAD to Gain on Firm Canadian Jobs Report Giving Green Light to BoC Hike

2018-07-06 11:30:00
Justin McQueen, Analyst
Share:

CAD Analysis and Talking Points

  • Canada expected to add 24k jobs for the month of June
  • Better than expected jobs report to cement BoC rate hike next week.

Canada is expected to show a jobs gain of 24k (Low 20k, High 35k) with the unemployment rate standing at 5.8%. A reading above expectations should cement a rate hike by the Bank of Canada next week. As it stands, overnight index swaps are pricing in an 88% chance for the central bank to raise interest rates by 25bps to 1.5%. As such, with a rate hike next week more or less fully priced in, CAD gains may be somewhat limited given the backdrop of trade wars, which in turn weigh on commodity currencies. Focus now for investors will be the longer-term rate path by the BoC with only a 50/50 probability that the BoC will deliver another rate raise.

CAD to Gain on Firm Canadian Jobs Report Giving Green Light to BoC Hike

Source: DailyFX Economic Calendar

BoC Outlook Impacted by Trade Wars

While the Bank of Canada continues to emphasise that they are data dependent, the escalating nature of trade tensions has prompted Governor Poloz to incorporate the impact into their forecasts at the upcoming. Subsequently, while a hike next week is the most likely outcome, there is risk that the BoC end up delivering a dovish hike.

Bank of Canada Rate Hike Expectations

CAD to Gain on Firm Canadian Jobs Report Giving Green Light to BoC Hike

Source: Thomson Reuters

USDCAD PRICE CHART: Daily Time Frame (February 2018-July 2018)

CAD to Gain on Firm Canadian Jobs Report Giving Green Light to BoC Hike

Chart by IG

Canadian Dollar Technical Analysis (For a full overview across major Canadian Dollar pairs, click here)

A relatively subdued week thus far for USDCAD with lower volumes leading to somewhat static price action with support at 1.3132 holding for now (61.8% Fibonacci retracement of the 1.3793-1.2061 fall). Nonetheless, the slow grind lower continues for the greenback, which in turn has kept USDCAD on the backfoot, while falling RSI indicators, suggest downside is set to persist. A close below 1.3132 could signal an exacerbation of the USD losses, to make a run in on the 1.30 area. On the upside, key resistance is situated at the 76.4% Fibonacci retracement, at 1.3385, USDCAD has rejected this on two occasions, while near term resistance resides around the 20DMA (1.3220).

IG Client Positioning Sentiment states recent changes in sentiment warn that current USDCAD price trend may soon reverse lower. For full client positioning click here

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.